You are not liable to pay stamp duty in several cases. This is worth knowing, because you could potentially save thousands of dollars in stamp duty. If you transfer a share of your property to a former spouse or de facto partner, you are not liable to pay stamp duty. This is also applicable if the transferee is to a child or children, or to a trustee for the child or children, of one of the parents of the relationship.
To be exempted from stamp duty, the transfer of the property must be in accordance with either:
- A Court Order made under the Family Law Act 1975, or
- A binding financial agreement made under the Family Law Act.
It is not necessary to go to court to get a binding financial agreement.
The stamp duty exemption applies to both married couples and those who are in de facto or domestic relationship. A de facto relationship is defined as a couple being in a relationship and living together ‘on a genuine domestic basis’ according to the Section 4AA of the Family Law Act 1975 (Cth).
The couple must not be:
- Legally married to each other, and
- Related by family.
A de facto relationship can apply to both opposite and same-sex couples. If you do require a binding financial agreement that will help you get a stamp duty exemption, please contact Withstand Lawyers as soon as possible.
Step By Step Guide for Stamp Duty Exemption
- You need to get a certified copy of your Court Orders or Binding Financial Agreement. This document will need to state that the property is to be transferred to one of the parties to the marriage.
- Find the Transfer form on the Department of Land and Property website. Download it and complete it.
- Find the Form ODA 069 ‘Application for Exemption or Refund – Breakup of a Marriage or De Facto Relationship’ on the Office of State Revenue website. Download it and complete it.
- Find the Purchaser Declaration form on the Office of State Revenue website. Download it and complete it.
- Send the above documents to the Office of State Revenue (OSR) to be noted for stamp duty exemption.
- Once the exemption has been approved, the OSR will send the Transfer form back to you. You will receive it stamped it marked ‘Exempt from Stamp Duty’.
- Lodge the stamped Transfer, together with the Notice of Sale, Certificate of Title, paid fee, Discharge of Mortgage at the Land and Property Information.
If you need help or guidance with any of the listed steps, please do not hesitate to contact Withstand Lawyers.